The troubled mortgage fund manager LM Investment Management Limited and its directors are facing the prospect of a flurry of lawsuits on behalf of investors after the business was placed into administration.
LM, which was the subject of a Four Corners exposé earlier this month, was placed into voluntary administration last night, with the retirement savings of thousands of people who had invested in its funds at risk.
Law firm Piper Alderman confirmed today that it is planning to launch class action litigation against LM, based on the Gold Coast and headed by former mortgage broker Peter Drake.
Thousands of investors have lost hundreds of millions of dollars in funds managed by LM.
Retail investors, many of them elderly retirees or near retirees, have had their investments in LM’s First Mortgage Income Fund written down and their remaining monies frozen in the funds for more than four years.
Piper Alderman lawyer Shaan Palmer says the firm is “assisting unit holders in relation to the ongoing demise of the LM First Mortgage Fund, including in respect of a class action.”
“We presently act for a major portion of the unit holders by value.
“We are investigating claims against the responsible entity of the fund, LM Investment…